06-17 HRA Resolution No. 1335 HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD,MINNESOTA
RESOLUTION NO. 1335
RESOLUTION APPROVING SUBORDINATION AGREEMENT RELATING TO TOWNHOMES
DEVELOPMENT
WHEREAS, the City of Richfield, Minnesota (the "City") and the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota (the "Authority") have approved the creation of Tax
Increment Financing District No. 2018-1 (a housing district) (the "TIF District") within the Richfield
Redevelopment Project in the City (the "Redevelopment Project") and have adopted a tax increment
financing plan for the purpose of financing certain improvements within the Redevelopment Project;and
WHEREAS, the Authority entered into a Contract for Private Development, dated September 17,
2018 (the "Development Agreement") with Cedar Point Investments LLC, a Minnesota limited liability
company (the "Developer"), pursuant to which the Developer agreed to acquire 15 parcels of property (the
"Development Property") located within the TIF District, including four properties owned by the Authority
and conveyed to NHH Companies L.L.C, a Minnesota limited liability company and proposed to be
conveyed to the Developer, and construct on the Development Property a development which will include
approximately 80 owner-occupied affordable townhomes and necessary public infrastructure, including
streets and utilities(the"Minimum Improvements"),and the Authority agreed to reimburse the Developer for
a portion of land acquisition costs and certain site improvement costs related thereto with tax increment
generated from the Development Property;and
WHEREAS, to make the Minimum Improvements more economically feasible, Boundary Waters
Bank(the`Bank")has agreed to make a loan in the amount of$2,070,000 to the Developer; and
WHEREAS, as a condition to providing the Loan, the Bank is requiring that the Authority
subordinate certain of the Authority's rights under the Development Agreement, including but not limited to
the rights of the Authority with respect to the Development Property, to the rights of the Bank under the
documents to be executed in conjunction with the Loan, pursuant to the terms of a Subordination Agreement
(the "Subordination Agreement") proposed to be entered into between the Authority, the Bank, and the
Developer, a copy of which has been presented before this Board of Commissioners of the Authority and
execute an estoppel certificate;and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield,Minnesota as follows:
1. The Subordination Agreement and the estoppel certificate are hereby in all respects
authorized, approved, and confirmed, and the Chair and the Executive Director are hereby authorized and
directed to execute the Subordination Agreement and the estoppel certificate for and on behalf of the
Authority in substantially the form now on file with the Community Development Director but with such
modifications as shall be deemed necessary, desirable, or appropriate, the execution thereof to constitute
conclusive evidence of their approval of any and all modifications therein.
2. The Chair and the Executive Director are hereby authorized to execute and deliver all
documents deemed necessary to carry out the intentions of this resolution,the Subordination Agreement, and
the estoppel certificate.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
this 17th day of June,2019.
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Mary Suppl ,Chair
ATTEST:
Erin Vriez Daniels, ecretary
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